Rental
ownership has a long history of satisfying the primary investment
priorities of personal financial independence: safety of capital,
inflation hedge and tax-favored income. Traditionally, if the detailed
financial statements of the wealthy are available for review it becomes
apparent that long-term income producing real estate assets directly or
indirectly contribute substantially to their net worth.

Certainly
there are exceptions that get the notoriety. There are the
entrepreneurs that hit the jackpot with a new invention, the right
innovation at the right time and/or the market control of a needed
commodity. Then there are the speculators that successfully capture the
benefits of leveraged capital, cheap labor or some windfall in the
short-term that cannot be repeated with consistency.

However,
forget the outliers and the top one-percent and concentrate on the
basics of what has worked for the top twenty-percent. Locally understood
and available rental properties purchased carefully one at a time
consistently becomes the safest real asset to own. Note that a small
share in a national real estate investment trust may seem like a safe
way to get the benefits of real estate ownership but in fact, this is
just another financial asset with the same characteristics and
historically similar results as any other stock market investment.

Well-located,
rental-producing real estate has usually fared better as a long-term
hedge against inflation when compared to financial investments. The
closer your investment resembles a small business serving customers with
an essential part of daily life the more likely that its operations and
value are going to keep up with the cost of living.

Though
assets may hold value no reliable income is produced. Equity in your
personal residence is its own goal providing a sense of financial
well-being, a source of emergency funds and a reduction of household
expense as you approach retirement; but no income. However, a well
maintained and managed rental (house, condo, duplex, and apartments,
commercial) that is held free of debt produces tax-favored income on a
consistent basis.

Finally, providing ongoing rental housing for
households and/or businesses within your community is socially
responsible and should be a greater source of personal satisfaction and
connection compared to institutional financial investments.

FBS
has over four decades of real estate experience. This experience and
expertise gives us a unique perspective which is straightforward, direct
and transparent. Well located real estate should be owned as a long
term investment since it is the safest, most productive method for
average people to build wealth. We also believe that property should be
kept rented in order to make long term ownership possible since rent
collected is helping to keep the property well maintained and paying
down loan principal. Eventually the property will be debt free and the
rent can become an excellent safe source of additional retirement income
for the investor. We have taught and utilized this realistic “real
estate doctrine” for decades while keeping our clients on track with
comprehensive advisory services and “best practices” property
management. Please stop by www.fbs-pm.com